Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Homeowners Use Savings and Credit to Fund Essential Repairs
A new survey by the Homeowners Alliance and Federation of Master Builders (FMB) has found that UK homeowners are increasingly using their savings or credit to pay for essential building work to keep their homes safe. The research shows that 65% of homeowners use savings for repairs and upgrades, while over a third rely on mortgage borrowing to fund the work.
The survey highlights that much of this spending is directed towards essential repairs. More than a quarter (27%) of respondents reported upgrading electrics, plumbing, or heating systems, and 24% said they were fixing structural damage or disrepair.
Among mortgage holders, the study found that 14% had increased their mortgage or remortgaged to pay for building work. Additionally, 10% used credit cards, 9% used supplier financing, and 5% took out personal loans. Only 24% of homeowners were able to pay for building work from their regular household income alone.
The findings are particularly relevant for letting agents and inventory clerks, as they underline the financial pressures homeowners face in maintaining property safety and standards. The report also notes that the risk of substandard work or being overcharged may increase as more homeowners stretch their finances to cover essential repairs.
A separate study from BuildLoan, referenced in the article, found that the average cost of renovating an uninhabitable home was around £70,000, with costs rising for properties left vacant for longer periods.
Source: Mortgage Solutions